How to take profits from your cryptocurrency gains is always a hot topic it seems. I hold an in-person class in Long Beach, CA and I get a ton of questions about the best way to take profits from your crypto gains. While I really try not to give investment advice I can at least help clarify for beginners why you should probably be measuring your profits in satoshis instead of USD value. Follow along with The 'Stache as I break down when you should value profits in satoshis and when you should value against USD.
What Is A Satoshi Anyways?
The satoshi, or sometimes referred to as "sats", is the name given to the smallest divisible amount of Bitcoin and represents 0.00000001 of 1 Bitcoin (or 100,000,000th of 1 Bitcoin). The smallest unit of BTC measurement is named in homage to the mysterious creator of Bitcoin, Satoshi Nakamoto (see my article about Who Is Satoshi?). While the satoshi value is typically displayed in most transactions you might not have paid much attention to it. It is most often seen when calculating fees for bitcoin as they are measured in sats/byte.
Bitcoin Is King (& ETH, LTC Are Pretty Good Too)
I will let you in on a little secret, that Altcoin you really love... you will probably have to buy...READ THE FULL STORY ON MY WEBSITE: https://www.cryptostache.com/2018/03/02/probably-measuring-crypto-profits-satoshis/
This is of particular importance for when you have no fiat cashing-out option, sure the price of your coin may have increased vs $USD but it may actually be down relative to the coin you used to trade into the currency.
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Exactly!
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I don't know if most portfolio trackers can use satoshi as a means to display them gainz.
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Probably using the wrong tracker then! lol
You actually make a good point, most of the tracking sites and apps don't do this and this sure as shit should. Valuing your crypto in sats is a more forward thinking and future supporting method then looking back at fiat value imo.
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Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://www.cryptostache.com/2018/03/02/probably-measuring-crypto-profits-satoshis/
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Interesting article
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Thanks! What did you like the most about it? That way I can improve my writing!
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